CCI accuses Samsung, Xiaomi, Amazon, Flipkart of anti-competitive practices – India TV

Regulatory reports have revealed that smartphone companies like Samsung, Xiaomi and others collaborated with Amazon and Walmart’s Flipkart to launch products exclusively on e-commerce platforms in India, violating antitrust laws. Investigations by the Competition Commission of India (CCI) found that Amazon and Flipkart violated local competition laws by favoring select sellers, prioritizing certain deals and giving deep discounts on products, which harmed other companies.

What does the CCI report say?

The CCI reports have implicated the Indian units of Samsung, Xiaomi, Motorola, Realme and OnePlus in the practice of exclusive phone launches in collusion with Amazon and its subsidiaries, which is a violation of competition law. Similarly, the Indian units of Samsung, Xiaomi, Motorola, Vivo, Lenovo and Realme have been found to be involved in similar practices in the case of Flipkart.

The involvement of smartphone giants like Samsung and Xiaomi in the case could lead to legal and compliance issues. Reports emphasize that exclusivity in the business not only harms fair competition but also goes against the interests of consumers.

Amazon and Flipkart reportedly deliberately downplayed allegations of exclusivity on launches during investigations, but the practice has been found to be widespread.

What happens next?

The investigation is a major setback for Amazon and Flipkart in a key growth market, especially given their ongoing conflicts with small retailers that affect their offline businesses.

The reports also mentioned that both companies used their overseas investments to offer subsidised rates for services such as warehousing and marketing to a select group of sellers.

The probe stems from a complaint filed by a branch of the Confederation of All India Traders, the country’s largest retail association. The CCI will hear objections to the findings by Amazon, Flipkart, the retail association and smartphone companies in the coming weeks and could potentially impose fines and order changes to their business practices.

What is the problem?

Retailers in India have long accused Amazon, Flipkart and smartphone companies of exclusive phone launches online, saying traditional retailers suffered because they did not have access to the latest models.

According to reports, exclusive launches have not only had a negative impact on brick-and-mortar sellers on the platform, but also on brick-and-mortar retailers. Online phone sales have seen a significant increase, with Flipkart and Amazon holding a majority of the market share.

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Data from Reuters